Average server DRAM content is doubling to 200GB this year at cloud service providers with some using 300GB on multi core CPU proliferation and Skylake introduction. Together DRAM + NAND server BOM is approaching 70% or up from 30-40% last year on higher pricing amidst DRAM shortages.

Overall, we believe mid to low teens DRAM supply bit growth on 1y/1z migration would not be enough to meet growing Cloud server demand unless new fabs/capacity is added.”